Sign up UNITED KINGDOM
Proactive Investors - Run By Investors For Investors

OptiBiotix licenses weight-loss technology to Premier Foods offshoot

The deal is with Knighton Foods, a supplier of powdered products to supermarkets and High Street coffee houses
woman with tape measure around midriff
Mmmm...sweet deal. The the synergy lies with Knighton's advanced powder technology

OptiBiotix Health plc (LON:OPTI) has signed a profit sharing agreement with a division of Premier Foods, which will manufacture and distribute the breakthrough weight-loss product, SlimBiome.

The deal is with Knighton Foods, a supplier of powdered products to supermarkets and High Street coffee houses.

The synergy lies with Knighton's advanced powder technology.

WATCH: Microbiome pioneer looks to ramp up revenues

READ: In-depth look at OptiBiotix

This, OptiBiotix said, was the key to developing an improved version of its product which is more easily soluble than the original and presents better.

Crucially for the end consumer, the flavour has been “greatly improved” along with ‘mouthfeel’.

“We chose Knighton due to their world leading expertise in adding value and differentiation to speciality powdered ingredients like SlimBiome,” said Stephen O’Hara, chief executive of the AIM-listed company.

“Their development work greatly improved SlimBiome's solubility, taste and mouthfeel whilst reducing the overall cost of manufacture.”

Exclusive UK deal 

Knighton will have the exclusive licence to manufacture and supply SlimBiome in the UK.

In return OptiBiotix will receive 50% of the profit. Also contained in the deal terms is an agreed cost of manufacture and minimum sales price per kilogramme.

“We believe working with Knighton, and similar partners around the world, provides the best opportunity of meeting the requirements of major retailers and the growing interest we are seeing in SlimBiome from partners worldwide," said O’Hara.

Positive endorsement

The broker finnCap said the Knight on deal was a positive endorsement of SlimBiome.

“Whilst the company is reluctant to provide sales forecast until it has developed a trading pattern, investors should note the positive momentum that is being displayed by OptiBiotix across all technology platforms,” said analyst Alex Pye.

The shares, up a fifth in the year to date, added a further 3% Wednesday to trade at 73p each. That values the business at just shy of £57mln.

Microbiome pioneer

OptiBiotix is a pioneer in the human microbiome, which is essentially the bacteria that inhabits the gut and skin.

It has found, for instance, small changes to the gut flora can affect the way the human body processes food.

Using its know-how it is developing compounds to tackle obesity (SlimBiome), high cholesterol and diabetes.

Knighton is just one of a series of deals Opti has inked of late. It has one with Tata Chemicals to develop weight management products for the Indian market.

It struck a profit-sharing deal with Italian firm Sacco to manufacture and supply its cholesterol-reducing compound LPLDL and the first sales of the product were made to HLH BioPharma Vertriebs·   

At the same time it has a non-exclusive agreement with Nutrilinea for the production and commercialisation of products containing the LPLDL in Europe.  

View full OPTI profile View Profile

OptiBiotix Health plc Timeline

Related Articles

ventripoint_device.png
June 21 2017
The device can give accurate and rapid volumetric information about all four chambers of the heart
1504120610_biotechLatest.jpg
October 23 2017
The company is poised for a milestone-rich period over the next year or so
1507647205_biotech_517925923.jpg
October 10 2017
Last month the group revealed its Barocycler 2320EXTREME device had been selected as a finalist in the prestigious R&D 100 Awards for 2017.

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2017

Proactive Investor UK Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use